i treat that and particularly in a political year which make me feel. that innocent yahoo who really has the initiative here i don't think for a second that obama's initiatives netanyahu has the initiative he thinks that our president will just kind of sit back and say oh darn if they attack iraq we get involved in that if he thinks that he's going to do it and what i would appeal for is an overt outspoken statement by the president as they say look a who looked a who brought bibi netanyahu if you do this don't count on us to pick up the pieces because they're going to be a lot of pieces even a previous mossad director in israel has warned that this could be the end of the state of israel and i think that could be right thank you so much for coming on the show and weighing in on this interesting perspective that was former cia analyst rana guard. and as egypt egypt adapts to a new government tensions between the u.s.

and cairo are coming to a boiling point and just a few days ago americans seek refuge at the u.s. embassy in cairo egypt has banned these americans from leaving the country due to their ties to organizations that cairo suspects are behind stirring chaos in the region want to talk more about what is happening in egypt while the for us project director for the foundation for defense of democracy is. there so i want to ask you first what exactly is going on in egypt right now. well basically something very odd is happening in egypt. the united states the administration has been among the first governments to support the uprising last year almost one year now those uprising have begun with youth women secular groups and then you know you had islamist forces of orser been part of it in two elections after now there's

a majority in the phantom of the muslim brotherhood and their allies the salafist democracy agencies which are funded by the u.s. congress government have been raided ten days ago two weeks ago raided by the government which is which has been basically the result of this revolution and then a leader one of the leaders of the democracy it is the ira mr know who would sound or who does son of the secretary for transportation is now banned from reading egypt so there is a serious crisis between the administration and and egypt today and coming under scrutiny are these n.g.o.s in egypt what are they suspected of. there are no charges i mean those n.g.o.s have been in egypt since two thousand and five at least the i.r.r. the one i know more about and they have been the whole year last year operating basically they are under the age of the egyptian government they have sometimes egyptian workers and american workers they train young egyptians to foreign action

for civic duties now the egyptian authorities that not really see why those n.g.o.s have been shut down but there is a suspicion that the government or the military council acting in agreement probably with the majority in the bottom and now and have held by the look of brotherhood that they want to eject those n.g.o.s that build n.g.o.s have helped to organize and want the u.s. to change now it's time for them to leave the country. well now after the elections have taken place we see the islamicists are in power over there they won big in the last elections i mean is this what the u.s. had in mind when they helped to help bring democracy to the contrary. you know what that's the biggest question of the day in washington and i think it's going to be part of the debate to come very fiercely this spring and next summer because a majority in congress of two parties and many n.g.o.s operating in washington have been pushing for the so-called arab spring in the spring in egypt in the revolt in

egypt a so-called with their regime alarm as a result of that and then instead what we see now is the islamist network should that be the muslim brotherhood or the elephant being the only ones who are actually funded by the fact of dollars coming from the gulf having this been supported by satellite that the live t.v. and also being engaged by the administration i mean this is very odd that our administration has engaged with the muslim brotherhood even before the revolt and after the revolt and in return what we see is a shutdown of these and you don't and you're right you have a point the result of the arab spring in egypt is not going to be immediately a secular democracy we're going to to begin. goes through a an era of islamic fundamentalism before the next wave of youth of speculators would rise again. and you know as tensions rise between the us and between egypt look at the bigger picture what does this mean between relations between the two countries are our the us are our close ties with egypt are they over

now not yet i mean the council is a partner to the u.s. forces there is somewhere between one point eight two billion dollars a year going to the ministry of asia but i think you're right what we see is that when the next parliament disbarment is going to form the next government is going to have a majority of fundamentalists formed and under this one not just the muslim brotherhood but you have the soffits office will have and the bath at least worked with al qaida or the band in public once established a sherry on a stage where women would have less rights in the past they used to send fighters if that is so there is a lot of clouds out there that needs to be dissipated before we know exactly in what direction if you egypt is going to go that are. looking now i had i mean what are your predictions for what does lie ahead for the country that is now under this transition. look egypt is basically the largest arab country the most a brotherhood in power for the first time they are going to maintain as much as

they can a friendship with the united states to get the donors of the united states basically military egypt but below that level what we're going to see is a push by civil society by the actual people who began their revolution and lost it and i'm talking about the people that google people to facebook people that middle class or lower class labor unions all these forces of reform actually have lost their evolution and those who are in charge of the new partners of the administration it all depends on also who's going to be here in the white house next to continue or not with partnership with islamists dr weil thank you so much for weighing in on this that was dr will lead far as project director for the foundation for defense of democracies and the author of the book the coming revolution struggle for freedom and the middle east well europe ruled it illegal police and brand continue to stop and search people whenever and wherever they like with little grounds for suspicion the area of society which finds itself

most often targeted believes there is only one reason for it the police are institutionally racist artie's the of our bennett has more from london. this is supposed to prevent terrorism police in britain have free rein to stop and search anyone they deem suspicious the what constitutes suspicious he's hugely controversial now he's stopped a young black men and police still can't escape and his ations of racism even from inside parliament. police will argue that it's because the people are typically looking for comfort fixation you know it backgrounds that starts to look very much like racial profiling and it's certainly true that these people are often massively disproportionately stopped all the boys at this youth club in north london have been stopped and searched some on several occasions all for being in the wrong place at the wrong time and they say for having the wrong skin color. or stop

because the type of car. was when they stopped us to explain. this type of car has been used in recent attacks going to texas to say about was this militia stopping the car. and the reality was to kill. four black boys in the car i think is more to do with stereotyping or stereotype but they seem a track change color like the color scheme began with they just for you know what letter something large and see what they got stabbings of frequent in this part of london carte blanche for police to stop and search whoever they want they can be in public sometimes physical poorly explained and often humiliating just embarrassing it was in the middle of the streets off on the highly embarrassing everyone was just like him they were busting their cars because of the bus pass and i don't know when the law came into force in two thousand and one police didn't even need a reason to stop and search europe finally when this illegal early last year

forcing concessions from the government since then stop and searches have decreased by ninety percent but problems still exist in theory there are strict limitations to stop and search the power is going to be used in a specific area fourteen days before he was twenty eight but in practice all that means nothing the powers can simply be renewed on expiry which is why the whole of london has been a stop and search zone for the last ten years police now don't even need to record the suspect. nane any injury they suffer all the outcome of a search the government says it will reduce paperwork but it leaves it wide open for a peek targeting and physical abuse kyle runs the youth center he too has been stopped repeatedly suspects are entitled to a receipt but few know this and kyle says police are often reluctant to make any record but most often search it's. kind of like trying refused to give you back to

sleep. and they say i've heard excuses we don't have no rights we have to go to the station to get it and if i still start to argue the case someone has a no i don't think in your form in the end of it so i do think i do target young people police used to have similar powers in the one nine hundred eighty s. but they were scrapped after racial targeting provoked massive riots some saw the august riots as history repeating itself but one of the things of course that was a nice thing about the place taught the stop and. alan stance at the place i certainly can't young people and the probably institutionally racist as well. eighty five percent of writers cited anger of police as their reason for violence in a recent study by the guardian newspaper a fact the government can no longer ignore it's prompted home secretary theresa may to launch a review of how stop and search powers they used either when it r.t.

london. well the ilana show is coming up in just a half hour let's check in with aloneness to see was the agenda today high low not what can we look forward to hey listen we've got a lot of good stuff coming up on the show today but first we're going to take a look at this intelligence report which director of national intelligence presented today in front of congress that said that the number one terror threat to the united states is now iran forget about al qaeda so we're going to see if that report actually hold some sway if that's a fair assessment to make and they're also going to speak to the cofounder of reddit because the reddit community isn't stopping after protesting sopa and pipa they're now going to try to create their own piece of legislation called the free internet act a lot to look forward to there that is coming up next on the alona show but that is going to do it for the news for more of the stories we covered you can head over to our to the dot com slash usa and you can also check out our youtube page it is

youtube dot com slash r t america you can also follow me on twitter as well we have a whole new segment coming up at the seven o'clock show regarding the national defense authorization act and it's now being implemented for the first time so that is all coming up at seven o'clock hope to see that. wealthy british soil. is no time to. market why not. find out what's really happening to the global economy with mike stronger for a no holds barred look at the global financial headlines tune into cars a report. he

. ties or this is the kaiser report. in the new. mag that's right from barry ritholtz in the word of the day zombie debt or a zombie debtor is a noun and indebted consumer who is only able to pay the debt interest each month

riots the debts never go away they get only pay the interest they're all was in debt and this applies throughout the entire economy not just on credit card debt but mortgage debt i think a touch of the consumer now if you look at the bankers of course they're involved in a very interesting situation in that they never pay interest on phantom debts. they loan into existence phantom debts that are on collateralized that they themselves only understand the configuration thereof but they never have to pay interest i were to get awarded norma's fees so here you have the two pillars of society zombie debtors who never escaped and clown bankers who never have to pay debt so the zombies and clones yep wherever there is

a zombie debt or you can be sure there's a zombie creditor and as zombie central banker feeding the mom the fed is starving economy of interest income so warren most layer of former broker manufacturer and co-founder and distinguished research associate of the center for full employment and price stability says the fed is part of the problem rather than part of the answer this is why we have so many zombie debtors he said it would serve public purpose if the fed made it clear that in today's rate environment what's called quantitative easing in fact removes interest income from the private sector thereby functioning much like a tax and a source of what's called fiscal drag as it takes net dollars out of the economy as it reduces the federal deficit well you're right if there were not this is on be better effect you would have a creation of interest income which would form the basis of the capitalism

something called cappy tall. and without the capital all there is no capital losses i'm. getting them the hood disease of the the capital you should have taken that conversation today max the whole world would be devoid of the zombie bankers not want to make a protest igloo in davos that looks like fun rob knows us well some of the locals or most of them go. as onto a second point he said this brings up my second criticism with regards to the interest income channel lowering rates in general in the first instance merely shifts interest income from savers to borrowers but he then goes on to say that while income for savers drop by nearly the full amount of the rate cuts costs for borrowers haven't fallen that much with the difference going to net interest margin of lenders thus you're enabling and feeding and empowering the zombie bankers and

you know think of those with a capital is flowing through the economy as a pipeline of capital if you will and the lower interest rates have the effect of the shutting down the pipeline of capital and causing deflation the central bankers are saying well we need lower interest rates to increase liquidity in the system that's patently false it shows that they have absolutely no idea how this economy works so unlike a chris whalen for example is a true banking analyst will tell you in order to get the cash flowing again you need to start to raise rates and the banks to lend to each other are those creating the basis of an inflationary scenario that would create the jobs and the growth that some people say is their objective but clearly it is not but let's talk about this point here max because you've often talked about raising rates and all the time you hear screeches horror that this cannot possibly happen because when the fed cuts rates by five percent as it has done over the past two years we get point

zero five percent taken off our interest rate so we have to pay for mortgages all the rest goes to the bankers all the rest is taken from savers and shifted to bankers so there is a vocal portion of the population who screeches and in horror and pain and their voices get heard out over the people who are savers and who could possibly provide the capital from which capitalism can once again return to the american economy. in the currency wars asymmetric they lower rates but the benefits accrue ninety nine point nine percent to the lenders the financial establishment on wall street very little of the benefits go toward people who are in the consumer economy who are the basis of the economy toward lowering their rates so there is no no of no benefit on the consumer side on the banking side it stifles lending within banks

and creates a elude quiddity which is of course contributing to the deflation and then the central banks say we don't know why there is deflation because we keep shutting off the liquidity don't understand why the taps of liquidity are drying up it shows a pattern of psychosis which i think most people now understand i think most people understand that in fact the intent is not for no money to go to the zombies because those are why would you ever want those peasant zombies to ever have any money again to pay off their debts you want them just eking eking eking out a lie a tiny tiny sort of subsistence level what you want those zombie shrieking to empower and to enable a vastly growing sector the finance sector lloyd blankfein gets more powerful jamie diamond gets more powerful the banking sector gets more powerful exactly because of this squealing desperate zombie debtors look at all these pension accounts like cal

pers for example the biggest in california one of the biggest in the world there they assume seven percent return on investments which assume interest rates of four or five or six percent interest rates for them because they're less than one percent or close to zero their return last year was one percent and they're just being a sensually discarded by this form of economic or financial pressure and as it's called there's a technical term for financial repression so former chief. columnist from morgan stanley asia was interviewed at dow voce along a similar theme as well stephen roach explains how the fed is pulling the wool over our eyes so we have a lot of squealing zombie debtors in america and the u.k. and other debt debtor nations australia canada anytime the notion that rates should be raised they shriek and it never happens well stephen roach talks to bloomberg and he talks about the fact that china is actually doing a lot better because they've introduced over

a dozen margin requirement rate hikes and they've also raised rates so that real interest rates are actually in real terms positive and then he goes on to say this when he's asked whether or not this would be possible in a democracy in a democracy do those actions do there you know we truly regret paul volcker well you know but do you suppose no excellent question i mean yours told us paul but we need we need a central banker who can really deliver. the goods and we've got central bankers right now who are i think trying to pull a war as was zero interest rates in this magic called quantitative easing yes well the paul volcker example is a good example they had the inflation they came after next and closed the gold window and you had gold spiking in price and you had massive inflation stagflation and came in raise interest rates and set the stage for

reagan reaganomics reagan just inherited everything that volcker position the head of that economy raising rates increases competition because it forces out the speculators who are merely parasitical in their behavior the bankers are just being parasites they want to lower rates higher rates would force those guys out and bring in entrepreneurs who are doing something other than just financial speculation it would be the best possible thing you could do for the u.s. and global economies to start. raising interest rates forcing out the speculator parasites giving people what savings the return on their investments the pensions and also the effect of raising real wages so let's go on to more of this magical thinking economists vs americans a new survey finds that just twenty three percent of americans say they trust u.s. financial system that is that as low as the earliest months of the economic crisis and sixty two percent describe themselves as angry or very angry about the nation's economic situation the highest level since march of two thousand and nine now this

is a study done by the university of chicago and northwestern university they also have a specific question they asked those they surveyed and they said predicting the stock market very few investors if any can consistently make accurate predictions about whether the price of an individual stock will rise or fall on a given day economist sixty four percent strongly agreed that you can't predict markets where americans overall fifty four percent agreed that you can't predict markets that means forty six percent of americans believe that you can magically predict where markets will go and so max does that explain to you why they might be losing money to brokers them and bankers well there's two points there the first point is one of the financial illiteracy now the fact is that rising interest rates would benefit consumers benefit the economy benefit wage earners benefit retirees benefit competition look at the comments underneath this video as it's playing on

the internet right now read the comments below this video that you're watching right now look at all the comments from the financial illiterates who don't understand this basic financial concept and that is the part of the big problem the second problem is in terms of predicting stock market results and prices only broken markets are predictable markets that are functioning are unpredictable that's what makes markets the supplier of cheap capital are all the losers who can't predict out. coms provide cheap capital for their winners if it were predictable you'd have price fixing and then you'd have more of a state can purely black heavy hand of the state controlling the entire market that's not that's not the what the market's all about the sole moniker of prediction markets is completely false that there is no such thing markets cannot predict but let's talk about beyond prediction markets the actual financial markets that we exist in live in today in our economy because this is bizarre that that's

what thirty six percent of a condom is believe you can predict outcomes and it is the maestro alan greenspan i think that helped brainwash the economy into believing that you can create outcomes with this magical wand and magical thinking but that's exactly what stephen king says indeed bunking economics is that the number one chief. ill conceived notion of economists is that you can predict economic outcomes or market outcomes and that's it's hard coded into the basic textbooks of economics that somehow economics is a science like chemistry where the outcome can be predicted that's false economics is like a social science where the outcome is completely unpredictable and the second you understand that the second you understand why ben bernanke and his crew are complete charlatans by putting forward some other theory it's simply not true look at the track record over the past ten fifteen fifty one hundred years based on the

central banking theory it's been a catastrophe so as ever thanks so much for being on the kaiser report thank you matt. and won't be while our shirts match. it's a magical the go i am much more coming away stay right there. came a time like a well trained on the. villages in ruins. for thailand where time stands still. all becomes a sea of nothing. the mysterious sounds of russia.

the. technology innovation all the latest developments from around russia we've gone to the future covered. you know sometimes you see a story and it seems so you think you understand it and then you glimpse something else you hear or see some other part of it and realized everything you thought you knew you don't know i'm tom harpur welcome to the big picture. max keiser welcome back to the kaiser report time out of london is bigger than that man the leyland said he had asked a man has read that welcome back to the kaiser report thank you matt from running a special feel with i just feel you now actually live now ned silver is the well over twenty percent of the twelve and it's in backwardation so first tell us what

is backwardation backwardation if the. the opposite of can tango normally in the precious metals market you'll find that the futures show you effectively the contrast trading higher than spot rather than lower backwardation effectively shows that there is. extreme tightness in the silver market at the moment we're seeing the spot contract trade daily just a smidgen higher than the front munch month which is margin and this is very very bullish and particularly in precious metals one wouldn't expect to see that and it does appear to be being created by the problems with m.f. global bear in mind precious metals investors and most sensitive investors overall counterparty risk and of course what happened with m.f. global was an extreme counterparty event and that leads many people to leave the futures market in the pressure is going into the stock market which is very bullish

for twenty twelve and i see this is being a major change ok last year the powers that be the central planners of the central bankers who don't like precious metals because it makes them look stupid when the prices go up they were raising margin acquirements and trying to get people out of this market but at the same time m.f. global and j.p. morgan stole people's money right out of their account so all of that work for nothing because now people are dumping their rig market j.p. morgan m.f. global accounts of buying physical and this is causing the near term price to get higher than the out outward prize so-called backwardation and this trend is a clear indication of the silverball market is well in place and going much higher i would imagine men yeah absolutely and bear in mind as well we have the the second element of this which is the.